The ECB could use Central Bank Securities to mop up liquidity. The use of this instrument may bring the additional advantage of the creation of a EMU-wide ‘safe asset’. This may bring advantages for the stability of the Eurozone.

EMU is vulnerable and must be strengthened. Much is possible within the current legal framework. Banking Union (incl. EDIS) must be completed and it is essential to create a pan-EMU safe asset. Moreover, the ECB needs more effective instruments.

The US dollar has been the global anchor currency since 1944. This gives the US certain advantages, but it also brings negative consequences for international stability. The global economy needs a new anchor, independent from an individual country.

The German economy is gradually losing momentum. Car sales are recovering, but damage of the third quarter of 2018 has not been repaired yet. Declining IFO indices also point at lower growth, but not a recession.

With a thought experiment we show how Italy could fall out of the Eurozone ‘by accident’. Many wrong policy decisions appear necessary to reach that point. So the risk that it will happen is extremely low.

The idea underlying Vollgeld is that of full-reserve banking from the 1930’s. In today’s context its side-effects would likely lead to instability and a deflationary tendency. In the Swiss case, uncertainty would have prevailed in the short-term, followed by a further appreciating Swiss Franc.